The Impact Of Agricultural Listed Companies Diversification On The Financial Risk

Agriculture is the foundation of our national economy,agricultural listed companies as the leading enterprises in the development of China's agricultural industry has a pivotal position.Agricultural listed companies,because of its weak,long investment cycle,slow,low industry profit and vulnerable natural environment and other factors,so have started diversification,expect this kind of business strategy to diversify the company's risk.However,the prevalence of diversified operations,on the one hand both may create further opportunities for the company to promote its sustained and stable development,on the other hand may also affect the company's normal operations resulting in the company to assume greater business risks,so the agricultural listed companies research management and the company's risk becomes significant.In this paper,while the extermal environment as the starting point,the extermal environment is classified as stable and volatile,in-depth study of the impact of agricultural listed companies risk diversification of the company under different state of the external ernvironment,which for our agricultural listed companies diversified timing theoretical and practical significance is very important.Purpose of this paper is based on the diversification of agricultural listed companies generally status,analyze the impact of different types of diversified business model in different external environments of the company risk.The diversified business model,according to the overall sample is divided into sub-samples related diversification and unrelated diversification,and the different sub-samples in a state that is stable and volatility external environment to classify the case Regression Research,to explore different business models differences diversified agricultural listed companies on the risks,providing theoretical guidance and strategic decision-making reference for the agricultural listed companies diversified business practice.Thesis,a study from the following aspects:First,agricultural listed companies from diverse backgrounds and related concepts of operations research.In agriculture diversification of listed companies on the basis of background research,we referred to herein as the diversification,the company's risk,the extermal environment and other related concepts defined.The second is related to the theoretical basis and empirical research review.Risk diversification of agricultural listed companies present in the dispersion,resource-based,over-investment,agency theory to summarize and sort out relevant empirical research results.Third,variable selection and model design.According diversified business model will be classified as a variable related diversification and unrelated diversification,while the external environment,according to GDP and the primary industry classification is stable and volatile,build a model test Diversification and risk related to the company relationship.Fourth,diversification into corporate risk management and regression testing.Different types of diversified business model that is related to diversification and unrelated diversification regression analysis in a stable and volatile extermal environment.Five is the conclusion and prospect empirical research.The main conclusions of this study are:(1)stable external environment,agricultural listed companies diversified company can effectively disperse risk points;(2)fluctuations in the extermal environment,the diversification of agricultural listed companies is difficult to help protect against the risk of the company;(3)in terms of stability or volatility of the extermal environment,the effect of agricultural listed companies unrelated diversification diversify the company's risks are related to better diversification.Aiming empirical findings summarized the enlightenment of agricultural listed companies diversified business decisions.Agricultural diversification of listed companies should pay attention to the business model and operation timing,and continuously improve their ability to deal with risk.Finally,he elaborated on later research outlook.